With these changes mentioned above, what can we expect to see, what should we watch out for, and what are the red flags to failure when it comes to mass customization? When Guido Silbert traveled through Vietnam, he experienced something that changed how he felt about customization. He had the opportunity to help design his own leather bag, exact to his needs, in the patterns and beautiful leather colors he desired.
As Silbert watched his own creative vision come to life, the wheels started turning, and Jacques Silbert was born. This is the place where you become the designer, and at the end of the process, are rewarded with a piece born of your imagination. So, what could go wrong? Selling customization is expensive. A website to sell custom pieces on a mass scale is also expensive, and this option, to allow consumers to build and really conceptualize their custom piece is necessary to sales in this type of business.
So the amount of money needed, before you ever make a sale , to have the proper tech and website and 3D rendering, is high and can be make or break.
However, maybe mass customization never really worked for Dell. I would love to talk to someone from Dell about this. This tumblelog is powered by Tumblr , and was designed by Bill Israel.
Like What You See? When that happens, costs can easily spiral out of control. Investment Criteria. The dominant investment logic for a mass producer is the quest for economies of scale, which tends to favor rigid fixed assets that are unlikely to fit mass customization.
Value-Chain Constraints. Reconfiguring a value chain that was originally conceived for volume production in order to accommodate a variable product mix can present a number of problems. An existing corporate purchasing policy, for example, can make it difficult for a division to select a new base of suppliers.
Moreover, external structural constraints within supplier and distribution channels can also pose significant obstacles. We did not find any magic bullet to overcome these challenges. As we have argued before, mass customization requires a business to develop three fundamental capabilities. Admittedly, the development of these capabilities mandates for organizational changes that are often difficult, because of powerful inertial forces that might exist within a company.
Shifting the focus of value creation toward true customer centricity requires no less than a radical change in the management mind-set. We have seen a repeating pattern of companies that failed in implementing mass customization.
These companies were unsuccessfully managing the change process from a product-focused, mass producing firm to a customer-centric organization.
Business managers and their employees often get accustomed to a dominant logic shaped by the attitudes, behaviors, and assumptions that they have witnessed in their environments over a long time.
However, shifting the focus of value creation toward true customer centricity requires no less than a radical change in the management mind-set. Firms must thus begin at the level of normative management with the challenge of changing the old and adversarial perceptions towards customers and developing an attitude of listening to and aligning with them.
The introduction of mass customization must always be preceded by a well-conceived and well-deliberated change management process that will make the organization more customer centric. In the final part of our series of articles, we will discuss a number of more concrete action points. Frequently quoted in The New York Times, The Economist, and Business Week, amongst others, Frank is regarded as one of the leading experts on mass customization, personalization, and open innovation.
Email: [email protected] mass-customization. His research focuses on operation strategy in uncertain environments and customer-centric organization design. He has been researching such topics as mass customization, concurrent product-process-supply chain design and organization design for efficient product configuration. He received a Ph. Email: [email protected] fabrizio.
Introduction : A special series of articles on mass customization and customer co-design. Part 1 : Competing in the Age of Mass Customization. Part 2 : The market for mass customization today. Part 3 : Solution Space Development: Understanding where customers are different. Part 4 : Robust Process Design: Fulfilling individual customer needs without compromising performance. Part 5 : Choice Navigation: Turning burden of choice into an experience.
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